1Amending the act of May 16, 1923 (P.L.207, No.153), entitled "An
2act providing when, how, upon what property, and to what
3extent, liens shall be allowed for taxes and for municipal
4improvements, for the removal of nuisances, and for water
5rents or rates, sewer rates, and lighting rates; for the
6procedure upon claims filed therefor; the methods for
7preserving such liens and enforcing payment of such claims;
8the effect of judicial sales of the properties liened; the
9distribution of the proceeds of such sales, and the
10redemption of the property therefrom; for the lien and
11collection of certain taxes heretofore assessed, and of
12claims for municipal improvements made and nuisances removed,
13within six months before the passage of this act; and for the
14procedure on tax and municipal claims filed under other and
15prior acts of Assembly," further providing for authorization
16to municipalities to impose tax liens on any property
17throughout this Commonwealth and on the funds in certain bank
18accounts.

19The General Assembly of the Commonwealth of Pennsylvania
20hereby enacts as follows:

21Section 1. Section 2 of the act of May 16, 1923 (P.L.207,
22No.153), referred to as the Municipal Claim and Tax Lien Law, is
23amended to read:

24Section 2. All taxes which may hereafter be lawfully imposed
25or assessed on any property in this Commonwealth, and all taxes

1heretofore lawfully imposed or assessed by any municipality on
2any property in this Commonwealth for the years one thousand
3nine hundred and twenty-one, one thousand nine hundred and
4twenty-two, and one thousand nine hundred and twenty-three, in
5the manner and to the extent hereinafter set forth, shall be and
6they are hereby declared to be a first lien on said property,
7together with all charges, expenses, and fees added thereto for
8failure to pay promptly; and such liens shall have priority to
9and be fully paid and satisfied out of the proceeds of any
10judicial sale of said property, before any other obligation,
11judgment, claim, lien, or estate with which the said property
12may become charged or for which it may become liable, save and
13except only the costs of [the] any sale and of the writ upon
14which [it] such sale is made.

15Section 2. Section 3(a) and (a.1) of the act, amended August
1614, 2003 (P.L.83, No.20), are amended to read:

17Section 3. (a) (1) All municipal claims, municipal liens,
18taxes, tax claims and tax liens which may hereafter be lawfully
19imposed or assessed on any property in this Commonwealth, and
20all such claims heretofore lawfully imposed or assessed within
21six months before the passage of this act and not yet liened, in
22the manner and to the extent hereinafter set forth, shall be and
23they are hereby declared to be a lien on said property, together
24with all charges, expenses, and fees incurred in the collection
25of any delinquent account, including reasonable attorney fees
26under subsection (a.1), added thereto for failure to pay
27promptly; and municipal claims and municipal liens shall arise
28when lawfully imposed and assessed and shall have priority to
29and be fully paid and satisfied out of the proceeds of any
30judicial sale of said property, before any other obligation,

1judgment, claim, lien, or estate with which the said property
2may become charged, or for which it may become liable, save and
3except only the costs of the sale and of the writ upon which it
4is made, and the taxes, tax claims and tax liens imposed or
5assessed upon said property.

6(2) (i) When any municipal tax on real property becomes
7delinquent, such tax, together with all charges, expenses and
8fees, including reasonable attorney fees, added thereto for
9failure to pay promptly, shall be a lien upon all other real
10property that is both owned by the delinquent taxpayer and
11located within this Commonwealth. Provided, however, that with
12respect to real property located outside the taxing
13municipality, no lien shall exist against such real property
14until filed with the prothonotary of the county or counties in
15which the real property is situated.

16(ii) A lien under this paragraph shall have the same force
17and effect as a personal judgment against the delinquent
18taxpayer and shall be subject to all prior claims, mortgages,
19ground rents, charges and estates.

20(iii) The inclusion in a lien under this paragraph of
21charges, expenses and fees incurred in the collection of any
22delinquent account, including reasonable attorney fees, shall be
23subject to the requirements of subsection (a.1).

24(a.1) It is not the intent of this [subsection] section to
25require owners to pay, or municipalities to sanction,
26inappropriate or unreasonable attorney fees, charges or expenses
27for routine functions. Attorney fees incurred in the collection
28of any delinquent account, including municipal claims, municipal
29liens, taxes, tax claims and tax liens, shall be in an amount
30sufficient to compensate attorneys undertaking collection and

1representation of a municipality or its assignee in any actions
2in law or equity involving claims arising under this act. A
3municipality by ordinance, or by resolution if the municipality
4is of a class which does not have the power to enact an
5ordinance, shall adopt the schedule of attorney fees. Where
6attorney fees are sought to be collected in connection with the
7collection of a delinquent account, including municipal claims,
8municipal liens, taxes, tax claims and tax liens, the owner may
9petition the court of common pleas in the county where the
10property subject to the municipal claim and lien, tax claim and
11lien or taxes is located to adjudicate the reasonableness of the
12attorney fees imposed. In the event that there is a challenge to
13the reasonableness of the attorney fees imposed in accordance
14with this section, the court shall consider, but not be limited
15to, the following:

16(1) The time and labor required, the novelty and difficulty
17of the questions involved and the skill requisite to properly
18undertake collection and representation of a [municipality in
19actions arising under subsection (a)] municipality.

20(2) The customary charges of the members of the bar for
21similar services.

22(3) The amount of the delinquent account collected and the
23benefit to the municipality from the services.

24(4) The contingency or the certainty of the compensation.

25* * *

26Section 3. Section 4 of the act, amended July 28, 1953
27(P.L.678, No.212), is amended to read:

28Section 4. The lien for taxes shall exist in favor of[, and
29the claim therefor may be filed against the property taxed by,]
30any municipality to which the tax is payable and the lien may be 

1filed against the property taxed by such municipality, as well 
2as against all other property that is both owned by the person 
3who owns the property subject to the tax and located within this 
4Commonwealth.

5The lien for the removal of nuisances shall exist in favor
6of, and the claim therefor may be filed against the property
7from which it is removed, or by which it is caused, by, any
8municipality by or for which the nuisance is removed.

9The lien for grading, guttering, paving, macadamizing, or
10otherwise improving the cartways of any highways; for grading,
11curbing, recurbing, paving, repaving, constructing, or repairing
12the footways thereof; or for laying water pipes, gas pipes,
13culverts, sewers, branch sewers, or sewer connections in any
14highway; for assessments for benefits in the opening, widening,
15or vacation thereof; or in the changing of watercourses or
16construction of sewers through private lands; or in highways of
17townships of the first class; or in the acquisition of sewers
18and drains constructed and owned by individuals or corporations,
19and of rights in and to use the same; or for water rates,
20lighting rates, or sewer rates, or rates for any other service
21furnished by a municipality,--shall exist in favor of, and the
22claim therefor may be filed against the property thereby
23benefited by, the municipality extending the benefit; or the
24city, borough, or township in which the property is located, if
25the work, material or service forming the basis of such lien was
26supplied by a municipal authority organized by a city of the
27second class, by a county of the second class or by a city of
28the third class and such liens or the claim therefor has been
29assigned to it.

30Municipal authorities organized by cities of the second

1class, by counties of the second class or by cities of the third
2class are hereby authorized to assign their municipal claims and
3their liens to the city, borough, or township in which the
4property subject thereto is located, and cities, boroughs and
5townships in which such property is located are hereby
6authorized to purchase the same. Upon such assignment or
7purchase the city, borough, or township acquiring such municipal
8claim or lien shall have the same rights thereunder as if it had
9supplied the work, material or service upon which such municipal
10claim or lien is based.

11When the contractor performing the work is to be paid by
12assessment bills, the lien shall exist for, and the claim shall
13be filed to, his use, and he shall under no circumstances have
14recourse to the municipality authorizing the work.

15Section 4. This act shall take effect in 60 days.